PayPal Holdings, Inc. $PYPL Stake Lessened by Red Spruce Capital LLC

Red Spruce Capital LLC decreased its holdings in shares of PayPal Holdings, Inc. (NASDAQ:PYPL) by 24.6% during the second quarter, HoldingsChannel.com reports. The institutional investor owned 37,703 shares of the credit services provider’s stock after selling 12,297 shares during the quarter. Red Spruce Capital LLC’s holdings in PayPal were worth $1,628,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of PYPL. Vanguard Group Inc. grew its stake in PayPal by 6.5% during the 4th quarter. Vanguard Group Inc. now owns 90,376,927 shares of the credit services provider’s stock valued at $5,276,205,000 after acquiring an additional 5,534,462 shares in the last quarter. Bank of America Corp DE lifted its position in shares of PayPal by 67.9% in the first quarter. Bank of America Corp DE now owns 25,614,720 shares of the credit services provider’s stock worth $1,158,554,000 after purchasing an additional 10,356,256 shares in the last quarter. Norges Bank acquired a new stake in shares of PayPal during the fourth quarter worth approximately $949,758,000. Amundi increased its stake in PayPal by 227.6% in the 1st quarter. Amundi now owns 13,804,208 shares of the credit services provider’s stock valued at $624,364,000 after buying an additional 9,590,488 shares during the period. Finally, Invesco Ltd. increased its stake in PayPal by 9.7% in the 4th quarter. Invesco Ltd. now owns 12,215,792 shares of the credit services provider’s stock valued at $713,158,000 after buying an additional 1,083,843 shares during the period. 68.32% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on PYPL. Daiwa Securities Group raised shares of PayPal from a “hold” rating to an “outperform” rating in a research note on Wednesday, May 6th. Citigroup increased their price objective on PayPal from $48.00 to $61.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Jefferies Financial Group raised PayPal from a “hold” rating to a “buy” rating in a research report on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $45.00 target price on shares of PayPal in a research note on Wednesday, July 29th. Finally, The Goldman Sachs Group set a $50.00 price target on PayPal in a research note on Tuesday, July 28th. Nine research analysts have rated the stock with a Buy rating, thirty-four have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $55.72.

PayPal News Roundup

Here are the key news stories impacting PayPal this week:

• Positive Sentiment: Potentially higher takeover offer: PayPal’s board reportedly rejected a $60.50-per-share proposal from Stripe and Advent International as too low. The stock remains below that level, leaving potential upside if the bidders return with an improved offer. PayPal Still Trades Below the $60.50 Bid Its Board Turned Down
• Positive Sentiment: Analyst support: PayPal attracted an analyst upgrade, while Cantor Fitzgerald raised its price target to $60. These actions reinforce the view that the stock’s valuation may not fully reflect its earnings and cash-generation potential. PayPal Trading Up After Analyst Upgrade
• Positive Sentiment: Operational improvement: PayPal exceeded second-quarter expectations with $8.68 billion in revenue and $1.38 in adjusted earnings per share, and raised its 2026 outlook. Investors are watching for progress in branded checkout, Venmo monetization and a return to profitable growth at Braintree. Acquisition Interest Is a Confirmation of How Undervalued This Resilient Company Is
• Positive Sentiment: Greater business-line accountability: Management plans to establish revenue targets for its three core units for the first time, potentially giving investors clearer benchmarks for evaluating the turnaround. PayPal Sets First-Ever Revenue Targets
• Neutral Sentiment: Valuation debate: PayPal screens as inexpensive after a steep multiyear decline, but Wall Street is taking a “prove it” approach. Investors need sustained growth and successful execution before assigning the company a higher valuation. PayPal Stock Looks Undervalued on Earnings but Weaker on Growth
• Negative Sentiment: Growth and margin risks remain: Slower revenue growth, higher technology costs and pressure on consumer spending could limit margins and make it harder for PayPal to justify a materially higher share price.

Insiders Place Their Bets

In other news, insider Suzan Kereere sold 3,379 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $42.79, for a total value of $144,587.41. Following the completion of the sale, the insider directly owned 30,983 shares in the company, valued at approximately $1,325,762.57. The trade was a 9.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Chris Natali sold 1,337 shares of the firm’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $58.10, for a total transaction of $77,679.70. Following the completion of the transaction, the chief accounting officer owned 2,216 shares in the company, valued at $128,749.60. The trade was a 37.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 10,612 shares of company stock valued at $484,534 over the last 90 days. 0.63% of the stock is currently owned by company insiders.

PayPal Trading Up 3.2%

PayPal stock opened at $59.78 on Friday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.29 and a quick ratio of 1.29. The company has a market capitalization of $51.14 billion, a price-to-earnings ratio of 11.30, a PEG ratio of 1.41 and a beta of 1.30. PayPal Holdings, Inc. has a one year low of $38.46 and a one year high of $79.21. The company’s fifty day moving average price is $48.18 and its two-hundred day moving average price is $47.07.

PayPal (NASDAQ:PYPL) last announced its quarterly earnings results on Tuesday, July 28th. The credit services provider reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.28 by $0.10. The company had revenue of $8.68 billion during the quarter, compared to analysts’ expectations of $8.47 billion. PayPal had a return on equity of 24.39% and a net margin of 14.36%.The business’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.40 earnings per share. On average, analysts forecast that PayPal Holdings, Inc. will post 5.37 earnings per share for the current fiscal year.

PayPal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.56 dividend on an annualized basis and a yield of 0.9%. PayPal’s dividend payout ratio is presently 10.59%.

PayPal Profile

PayPal Holdings, Inc operates a global digital payments platform that enables consumers and merchants to send and receive payments online, on mobile devices and at the point of sale. The company provides a broad set of payment solutions, including a digital wallet, merchant payment processing, checkout services, invoicing and fraud-management tools. PayPal’s platform is designed to support e-commerce, in-person retail and person-to-person transfers, targeting both individual consumers and businesses of varying sizes.

Key products and services in PayPal’s portfolio include the PayPal wallet and checkout ecosystem, the Venmo peer-to-peer mobile app, Braintree’s developer-focused payment gateway, Xoom for international money transfers, and PayPal Credit and buy-now-pay-later options.